Tenggara Backgrounder is a weekly briefing service combining insights and analysis by experts from the Centre for Strategic and International Studies (CSIS) and Universitas Prasetiya Mulya, as well as background information from The Jakarta Post journalists. Tenggara Backgrounder provides you exclusive insights into what’s happening behind the scenes along with insider scoops that are not published in the media.
Govt, House press forward amid outcry over omnibus billTenggara Backgrounder February 14, 2020
First announced last November, the government’s plan to draft omnibus bills on numerous subject matters have come in for public censure. The omnibus bill on job creation, in particular, has prompted opposition from labor unions, which claim the bill, which has been drafted with minimum public participation, will deprive workers of protection.
Tax agency, businesses disappointed with taxation omnibus billTenggara Backgrounder February 07, 2020
Using the taxation omnibus bill, Finance Minister Sri Mulyani promises to abolish income tax dividend, provide generous tax holidays and incentives for industry in special economic zones, cutting tax penalties, and change the definition of permanent establishment (BUT) from just physical presence into significant economic presence, so the government can tax technology companies that sell goods and services in the internet. Later, the revision includes reduction of corporate income tax from 25 percent to 22 percent in 2021 and 20 percent in 2023.
Minister under fire, integrity doubtedTenggara Backgrounder January 31, 2020
Law and Human Rights Minister Yasonna Laoly has put his integrity on the line due to his alleged complicity in giving out false information regarding the whereabouts of fellow Indonesian Democratic Party of Struggle (PDI-P) politician Harun Masiku, who is wanted for allegedly bribing a General Elections Commission (KPU) leader. Many fear Yasonna’s dual role as a minister and PDI-P politician in addressing Harun’s case set a bad precedent for conflicts of interest facing public officials.
Red carpet rolled out for coal baronsTenggara Backgrounder January 24, 2020
The job creation omnibus bill is not about job creation at all as it accommodates various vested interests, with the most blatant being the inclusion of clauses that allow coal barons to get extensions to their expiring concessions without having to go through a bidding process or reducing concession areas.
PDI-P in hot water ahead of regional electionsTenggara Backgrounder January 17, 2020
The Indonesian Democratic Party of Struggle (PDI-P), the country’s largest political party of which President Joko “Jokowi” Widodo is a member, has found itself at the center of a corruption scandal. Accused of abusing its power to allocate a House of Representatives seat to a favored member, the PDI-P faces a crisis of legitimacy ahead of the September regional elections, which the party aspires to win by a landslide.
Jiwasraya’s ‘gigantic’ loss and its systemic effectTenggara Backgrounder January 10, 2020
The Supreme Audit Agency (BPK) has rocked the country’s financial sector with its warning that Jiwasraya’s “gigantic” loss could spark a systemic risk. But financial regulators are not convinced that the problem-ridden state-owned insurance company could create a systemic effect.